3. Automobile Collision Insurance
Collision insurance is a coverage that helps you pay the repairs to your vehicle if you are involved in an accident, no matter the type of it—an accident with another car or an accident with an object, such as a fence or a tree. Note that if you have a loan out on your car, the loan issuer will require a collision insurance.
However, if the car is entirely yours, this type of coverage is optional. So, if you have enough money to pay off your car, collision insurance is often unnecessary, especially if we are talking about an old car.